DALLAS, Nov. 23 /PRNewswire-FirstCall/ — Dean Foods Company (NYSE: DF) today announced that the previously disclosed variable prepaid forward sale contract entered into between Gregg Engles, Chairman and CEO and an unaffiliated third party on November 21, 2008 has partially settled. The contract obligates Engles to deliver up to 950,000 shares of Dean Foods common stock over a four day settlement cycle running from November 19, through November 24, 2009. Engles initially pledged 950,000 shares of Dean Foods common stock to secure his obligations under the contract, but retained ownership rights in those shares. Based on the closing prices through November 23, 2009, Engles expects to retain approximately 127,000 shares of common stock pledged, and deliver the balance, or approximately 823,000 shares of common stock, to the purchaser in settlement of his contractual obligations. In exchange for assuming this obligation, Engles received a cash payment of $11,138,568 in November, 2008. Pledged shares in excess of the aggregate number delivered will be released from any obligation to the purchaser and returned to Engles.
Including his recent open market purchase of 35,000 shares, Engles continues to hold approximately 5.4 million shares of Dean Foods stock and vested options, representing approximately 3% of diluted shares outstanding.
ABOUT DEAN FOODS
Dean Foods is one of the leading food and beverage companies in the United States. The Company’s Fresh Dairy Direct business is the largest processor and distributor of milk and other dairy products in the country. The WhiteWave-Morningstar business produces and sells a variety of nationally branded soy, dairy and dairy-related products. Popular brands include: Silk® soymilk, Horizon Organic® milk and dairy products, International Delight® coffee creamers, and LAND O’LAKES® creamers. Additionally, the WhiteWave-Morningstar segment produces and sells private label cultured and extended shelf life dairy products through the Morningstar platform. Dean Foods’ business also includes Alpro®, the pan-European leader in branded soy food products.
Marguerite Copel, +1-214-721-1273
Barry Sievert, +1-214-303-3437
SOURCE: Dean Foods Company